Overview

Amarc has 100% Interest in the DUKE, IKE and JOY Porphyry Copper Districts

Amarc's DUKE deposit and the adjacent 190 km2 porphyry copper district, is located proximal to the former Bell and Granisle porphyry copper-gold mines operated by Noranda Mines in northern BC. At DUKE results received from two initial drill holes completed by Amarc in late 2017, both of which drilled lengths of over 500 m, indicate the discovery of an important new porphyry copper-molybdenum-silver-gold deposit. Both holes successfully targeted porphyry copper mineralization to depth significantly below that intercepted by historical drill holes that, on average, were drilled to depths of only 90 m. Amarc's drilling also unexpectedly encountered adjacent bulk gold-copper mineralization. With all the earmarks of the type of copper project with which our management team had tremendous success over the years, Amarc will continue to self-fund drilling at DUKE in 2018.

Importantly, after intersecting some 400 m of copper-molybdenum porphyry mineralization, continuation of the most westerly of the two drill holes discovered adjacent bulk tonnage-style gold-copper mineralization. With the previously producing Bell and Granisle porphyry gold-copper mines nearby, this unexpected and exciting new development enhances both the potential of the DUKE project, and the potential of the broader porphyry district staked by Amarc.

The 462 km2 IKE Project claims are located 33 km northwest of the historical mining community of Gold Bridge, south-central BC. The IKE Project hosts an important new large-scale copper-molybdenum-silver deposit discovery which remain open to expansion in all lateral directions and to depth, that lies within a significant and an underexplored 9 km2 mineralized system. The IKE deposit is located within a district of additional porphyry copper ± molybdenum ± gold ± silver deposit targets that remain to be fully explored.

At the 464 km2 JOY Project, which includes the more recently acquired PINE claims, Amarc controls the northern extension to the prolific Kemess porphyry gold-copper district. Through extensive historical and current surface surveys and drilling, Amarc has identified a new, 20 km long northeast trending structural corridor that hosts over 10 compelling porphyry gold-copper deposit targets. The property also hosts the open-ended Pine gold-copper deposit, which has a historical resource.

Amarc has partnered with Hudbay Minerals Inc. ("Hudbay") to fund advancement of the both the IKE and JOY Projects, with Amarc as operator during the exploration phase. Hudbay may acquire, through a staged investment process, up to a 60% ownership interest in each Project. In the first stage, Hudbay can earn an initial 49% interest in IKE and JOY by funding $25 million and $15 million, respectively, of project expenditures before December 31, 2021. Provided that Hudbay has completed the first stage of funding and acquired 49% interest in the IKE and/or JOY Projects, it can then elect to acquire a further 1% interest (for a total 50% interest) in each Project by funding $5 million and $15 million of expenditures, respectively, by December 31, 2021. Subsequently, Hudbay may earn a further 10% interest (for a total 60% interest) in each of IKE and JOY by completing further important milestones and completing additional project funding that are linked to the acceptance of the requisite project into the Environmental Assessment ("EA") review process and the issuance of the necessary EA Certificates. The partners have also agreed to include Amarc's recently acquired PINE claims into the JOY Project.

In 2017, Hudbay funded $3.3 million and $2.0 million of exploration activities at IKE and JOY, respectively, and has confirmed 2018 funding of $1.5 million to advance the IKE Project and $3.15 million to advance the JOY Project. Of the 2018 JOY funding, $1.15 million will be paid to Amarc in 2018 towards its PINE property acquisition costs.

In respect to the IKE and JOY Projects Amarc has worked successfully to remove several royalties and those that remain under the terms of property acquisition agreements have been capped (or can be purchased) by Amarc under reasonable terms. There are no royalties related to the DUKE Project.